USD/JPY nears multi-year highs amid higher US T-bonds yields
19.10.2021, 22:36

USD/JPY nears multi-year highs amid higher US T-bonds yields

  • USD/JPY trades virtually unchanged on Wednesday in the initial Asia session.
  • The US dollar trades below 94.00 despite higher  US T-bond yields.
  • US spending bill, hawkish Fed members, and higher equities rule traders' decisions.

USD/JPY remains muted on Wednesday, extending the previous session’s momentum. The pair stays in a relatively narrow price band, after hovering near the daily highs in the  US session. At the time of writing, USD/JPY is trading at 114.37, up 0.02% for the day.

The US benchmark 10-year Treasury bond yields trade at 1.64%, for the first time since May. As investors continue to anticipate the Fed’s tapering next month amid rising inflationary pressure and soaring energy prices. The weaker housing data dented the sentiment, which kept the greenback below 94.00.

The US Building Permits fell 7.7% in September whereas Housing Starts dropped 1.6%. The comments from Fed’s Governor Christopher Waller that a more aggressive policy might be required if higher inflationary pressure persists limits the losses for the buck.

Meantime, US President Joe Biden and Democratic lawmakers were close to a deal on the cost and scope of their cornerstone economic revival package as per Reuters.

On the other hand, the Japanese yen lost its ground  on improved risk sentiment. It is worth noting that, S&P 500 Future is trading at 4,512, up 0.02% for the day.

As for now, traders are waiting for Japan's Balance of Trade data, and US Fed’s Quarles speech to gauge the market sentiment.

USD/JPY additional levels


 

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